Sabre Slashes 2025 Air-Distribution Forecast; Shares Nosedive 38% on Corporate-Travel Weakness

Sabre Corp. slashed its full-year 2025 outlook on Thursday, warning that weaker-than-expected corporate and government travel will keep air-distribution bookings to just 4-10 percent growth versus the “double-digit” pace. The downgrade sent investors scrambling for the exits: shares collapsed 38 percent to $1.94 -- an all-time closing low that erased roughly $750 million in market value in a single session.

Sabre’s second-quarter revenue fell short of forecasts as air-distribution volumes dipped 1 percent year-on-year, with a steeper slide in government and corporate bookings.

Management now projects 2025 air-distribution bookings growth of just 4-10 percent, down from a prior “low teens” expectation. It also trimmed its revenue outlook from “high single-digit” expansion to “flat-to-low single-digit.”

Pro forma adjusted EBITDA is estimated at $530-$570 million, roughly $80 million below earlier guidance.

The stock’s 38 percent plunge wiped out gains notched since April and left Sabre trading almost 90 percent below its pandemic-era peak.

Chief Executive Kurt Ekert told analysts the miss was driven by a pronounced softening in large corporate and government travel late in the quarter that tend to be booked via GDS.

Management stuck with its goal of generating positive free cash flow in 2025, betting that cost cuts and a ramp-up in NDC-enabled content will offset sluggish volumes.

Previously, Sabre sold its hospitality solutions to TPG Capital for $1.1 billion.